[See section 3(5)]
Modifications subject to
which the provisions of this Act shall apply in cases where the previous year
in relation to the Assessment year commencing on the 1st April, 1989, referred
to in section 3(2), exceeds twelve months.
Definition.
1. In this Schedule, ’ “transitional previous year” means the
period reckoned as the previous year for the assessment year commencing on the
1st of April, 1989, in the manner specified in sub-section (2) of section 3
and, in a case where[3] [the first proviso or the
third proviso] to that sub-section applies, the longer or, as the case may be,
the longest of the periods reckoned in the manner laid down in [4] [the said first proviso or,
as the case may be, the third proviso].
Special provisions in a case where the
transitional previous year is longer than twelve months.
2. In a case where the transitional previous year is longer
than twelve months, the provisions of this Act and the Finance Act of the
relevant year shall apply subject to the modifications specified in rules 3,
4, 5 and 6 of this Schedule.
Modifications pertaining to monetary
limits, etc.
3. The provisions of this Act, specified in column (1) of the
Table below shall be subject to the modification that the reference therein to
the amount or amounts specified in the corresponding entry in column (2) of
the said Table shall be construed as a reference to the said amount or amounts
as increased by multiplying each such amount by a fraction of which the
numerator is the number of months in the transitional previous year and the
denominator is twelve:
Provided that for the purposes of
this rule and rules 5 and 6, where the transitional previous year includes a
part of a month, then, if such part is fifteen days or more, it shall be
increased to one complete month and if such part is less than fifteen days, it
shall be ignored:
[5] [Provided further
that the amount of ten thousand rupees, specified in column (2) of the said
Table against sub-section (2) of section 48, shall be increased during the
transitional previous year only where the long-term capital gains arises as a
result of two or more transfers of long-term capital assets and at least one of
the said transfers is made during the initial period of twelve months comprised
within the transitional previous year and the remaining transfer or transfers
is or are made during the period beyond the said period of twelve months comprised
within the transitional previous year:
Provided also that where more than one
period in respect of different sources of income are included in the
transitional previous year under the first proviso or the third proviso to
sub-section (2) of section 3, then the amount or amounts specified in column
(2) of the said Table shall be increased to such extent and in such manner as
the Board may, having regard to,—
(a) length
of the period or periods included in the transitional previous year in respect
of different sources of income;
(b) length of the transitional previous year ; and
(c) other relevant factors;prescribe
in this behalf.]
[6] [Table
|
Provision of
the Act |
Amount |
|
(1) |
(2) |
|
|
Rs. |
|
Section 10(3) |
5,000 |
|
Section 12A(b) |
25,000 |
|
Section 13(2)(g) |
1,000 |
|
Section 16(i) |
12,000 |
|
Section 16(i), proviso |
1,000 |
|
Section 16(ii) |
5,000 and
7,500 |
|
Section 23(1)(d)(ii) |
3,600 |
|
Section 24(2),
proviso |
5,000 |
|
Section
33A(7), proviso |
40,000, 35,000
and 30,000 |
|
Section 35A |
1/14th of the
amount of capital expenditure |
|
Section 35AB |
1/6th or 1/3rd
of the amount paid as lump sum consideration. |
|
Section 35D |
1/10th of the
amount of certain preliminary expenses. |
|
Section 37(2A) |
5,000 and
50,000 |
|
Section
40A(12) |
10,000 |
|
Section 44AA(2)(i) and (ii) |
25,000 and
2,50,000 |
|
Section 44AB |
40,00,000 and
10,00,000 |
|
Section 48(2) |
10,000 |
|
Section 80C(1) |
6,000, 9,000
and 12,000 |
|
Section 80C(3) |
1/10th of the
actual capital sum assured |
|
Section 80C(4) |
60,000 and
40,000 |
|
Section
80C(7)(c) |
10,000 |
|
Section
80CC(2) |
20,000 |
|
Section
80CCA(1) |
30,000 |
|
Section 80D(1) |
3,000 |
|
Section 80L(1) |
7,000
(occurring in two places) |
|
Section
80L(1), 1st proviso |
3,000 |
|
Section
80L(1), 2nd proviso |
3,000 |
|
Section
80P(2)(c) |
40,000, and
20,000 |
|
Section 80P(2)(f) |
20,000 |
|
Section 80U |
15,000 |
|
Section
139A(2) |
50,000] |
[7] [Modification in
section 6.
4. Where the transitional previous year comprises a period of
eighteen months or more, then sub-section (1) of section 6 shall be subject to
the modification that references therein to the periods of one hundred and
eighty-two days, ninety days and sixty days shall be construed as references,
respectively, to the periods of two hundred and seventy-three days, one hundred
and thirty-five days and ninety days.
Modification in respect of depreciation
allowance.
5. Where the assessee’s income under the head “Profits and
gains of business or profession” or under the head “Income from other sources”
for a period of thirteen months or more is included in his total income for
the transitional previous year, the allowance under clause (ii) of sub-section (1) of section 32
or, as the case may be, under clause (ii)
of section 57 in respect of depreciation on block of assets calculated in the
manner stated in clause (ii) of
sub-section (1) of section 32, shall be increased by multiplying it by a
fraction of which the numerator is the number of months in the transitional
previous year and the denominator is twelve:
Provided that where more than one
period in respect of income under the head “Profits and gains of business or
profession” or under the head “Income from other sources” are included in the
transitional previous year under the first proviso or the third proviso to
sub-section (2) of section 3, the allowance in respect of depreciation on block
of assets shall be calculated separately for each such period included in the
transitional previous year in the manner stated in clause (ii) of sub-section (1) of section 32
and increased, where necessary, by multiplying it by a fraction of which the
numerator is the number of months in such period (after excluding the number of
months relatable to the period in relation to which depreciation on block of
assets had been allowed or is allowable in the previous year relevant to the
assessment year commencing on the 1st day of April, 1988) and the denominator
is twelve.]
Modification in respect of rate of tax.
6. The tax chargeable on the total income of the transitional
previous year shall be calculated at the average rate of tax on the amount
obtained by multiplying such total income by a fraction of which the numerator
is twelve and the denominator is the number of months in the transitional
previous year, as if the resultant amount were the total income:
[8] [Provided that where
more than one period in respect of different sources of income are included in
the transitional previous year under the first proviso or the third proviso to
sub-section (2) of section 3, then the tax shall be chargeable at the average
rate of tax, calculated in accordance with the provisions of this rule, on the
total income of the transitional previous year after excluding from such total
income the income relatable to any such period or periods which has already
been included or is includible in the total income of the previous year or
previous year relevant to the assessment year commencing on the1st day of
April, 1988.]
Power of Board to grant relief in case of
hardship.
7. The Board may, if it considers it desirable or expedient so
to do for avoiding genuine hardship, by general or special order, grant
appropriate relief in any case or class of cases where the transitional
previous year is longer than twelve months.]
[1]Inserted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f 1-4-1989. Original Tenth Schedule was inserted by the Finance Act, 1975,
w.e.f. 1-4-1976 and was later on omitted by the Finance Act, 1985, w.e.f.
1-4-1986. Prior to its omission, the original Tenth Schedule stood as under :
“[See
section 40A(8)]
List
of institutions and bodies
1. The Industrial Finance Corporation of
2. Financial Corporations or Joint Financial
Corporations, established under the State Financial Corporations Act, 1951 (63
of 1951), and any institution deemed under section 46 of that Act to be a
Financial Corporation established by the State Government for the State within
the meaning of that Act.
3. The Shipping Development Fund Committee, constituted
under section 15 of the Merchant Shipping Act, 1958 (44 of 1958).
4. The Unit Trust of
5. The Industrial Development Bank of India, established
under the Industrial Development Bank of India Act, 1964 (18 of 1964).
6. State Electricity Boards, constituted under the Electricity
(Supply) Act, 1948 (54 of 1948).
7. The Life Insurance Corporation of
8. The Rehabilitation Industries Corporation of India
Limited.
9. The State Trading Corporation of India Limited.
10. The Minerals and Metals Trading Corporation of India
Limited.
11. The Rural Electrification Corporation Limited.
12. The Agricultural Finance Corporation Limited.
13. The Industrial Reconstruction Corporation of India
Limited.
14. The Industrial Credit and Investment Corporation of
India Limited.
15. The National Industrial Development Corporation of
India Limited.
16. The State Industrial and
Investment Corporation of Maharashtra Limited.”
[2]* See rule 125.
[3]Substituted for “the
proviso” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[4]Substituted for “the said
proviso”, ibid.
[5]Inserted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[6]Substituted,
ibid.
[7]Substituted
by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[8]Inserted by the Direct Tax Laws (Amendment) Act, 1989,
w.e.f. 1-4-1989.